Alden sues Lee Enterprises after media company rejects takeover bid

OMAHA, Neb.-- Nearly a week after Lee Enterprises rejected Alden Global Capital’s attempt to buy the media company, the hedge fund responded Wednesday with a lawsuit accusing Lee’s board of improperly denying shareholders the chance to have a say on the offer.

Lee, the owner of numerous Nebraska newspapers, rejected Alden’s offer to buy the company for $24 a share, or roughly $141 million, last Thursday because the company’s board decided the offer “grossly undervalued” the company.

But Alden argued in its lawsuit that Lee shouldn’t have rejected its offer and rebuffed its attempt to nominate three directors without even talking to the hedge fund. 

Lee publishes 77 daily newspapers, including 12 in Nebraska.